AMN PLUS-June 11,2026
Ethiopia’s integrated monetary and fiscal policy has fostered effective economic governance, enabling the country to register rapid economic growth, Minister of Finance Ahmed Shide announced.
The House of Peoples’ Representatives, during its 25th regular session of the 5th working year, is currently discussing the federal government’s draft budget for the 2019 Ethiopian Fiscal Year (EFY), following the budget statement presented by the Minister of Finance.
In his briefing to the House, Minister Ahmed Shide presented the details of the federal government’s 2019 EFY draft budget, which was recently approved by the Council of Ministers.
His presentation highlighted the trajectory of Ethiopia’s macroeconomic journey, the current fiscal year’s economic outlook and performance, and the detailed assumptions underpinning the upcoming year’s budget allocation.
The Minister noted that the successful implementation of the Homegrown Economic Reform Agenda and the Ten-Year Strategic Development Plan has enabled the Ethiopian economy to effectively withstand both internal and external pressures, ultimately registering strong performance and tangible results.
According to the Minister, Ethiopia’s economic performance has shown remarkable resilience and acceleration over recent years:
• 2012 – 2016 EFY: The economy grew at a robust average annual rate of 6.8%.
• 2017 EFY: The country registered an impressive growth rate of 9.2%.
• Current Fiscal Year (2018 EFY) Anticipated Growth: The economy is projected to grow by 10.2%, despite global pressures, including economic shocks stemming from the Middle East.
”This trajectory positions Ethiopia at the forefront of the world’s fastest-growing economies, demonstrating a highly successful growth path,” Minister Ahmed Shide stated.
The Minister emphasized that Ethiopia’s rapid growth is uniquely characterized by its concurrent success in curbing inflation, boosting productivity, and implementing sound macroeconomic policies.
The coordinated execution of fiscal and monetary measures, alongside productivity enhancements, has successfully driven down inflation.
The strategic interventions have successfully reduced the inflation rate of goods and services to a single-digit level, yielding positive outcomes across the economy.
Enhancing the efficiency of the supply chain for crop and livestock production, coupled with the promotion of urban agriculture, has played a pivotal role in curbing price hikes and providing relief to citizens.
Total domestic credit growth extended by banks was deliberately constrained to ensure that the money supply remains aligned with actual economic growth, effectively dampening inflationary pressures.
The practice of direct borrowing from the National Bank of Ethiopia to cover budget deficits was completely halted over the past years, a decisive factor in pulling inflation down to a single digit. As a direct result of these measures, the overall inflation rate, which had peaked at 34.5% in August 2014 EFY, was successfully brought down to a single-digit rate of 9.4% by March 2016 EFY.
The Minister further explained that the monthly Consumer Price Index (CPI) updates released by the Ethiopian Statistical Service clearly demonstrate the positive downward trend in the prices of both food and non-food commodities during the fiscal year.
Furthermore, proactive and coordinated efforts were implemented ahead of the foreign exchange reform to prevent it from exacerbating inflation, ensuring that price stability was heavily maintained.
According to ENA, the Minister concluded by noting that this achievement marks a major milestone that solidifies the ongoing journey toward building a more stable and prosperous economy.
By Leta Teresa
